A.P. (DIR Series) Circular No. 71, dated 30-6-2009 : External Commercial Borrowings (ECB) Policy.

This Circular modifies certain aspects of the ECB Policy
with immediate effect as under :

1. ECB for integrated township :

Presently, corporates engaged in the development of
integrated townships are permitted to avail ECB under the Approval Route up to
June 30, 2009.

This Circular has extended this permission up to December
31, 2009 under the Approval Route.

2. ECB for NBFC Sector :

Presently, NBFCs which are exclusively involved in
financing of the infrastructure sector, are permitted to avail ECB from
multilateral/regional financial institutions and Government-owned development
financial institutions for on-lending to borrowers in the infrastructure
sector under the Approval Route if, among other conditions, their direct
lending portfolio vis-à-vis their total ECB lending to NBFC at any point of
time is not less than 3 : 1.

This Circular has dispensed with this condition that the
direct lending portfolio vis-à-vis their total ECB lending to NBFC at any
point of time is not less than 3 : 1. All other conditions, including availing
ECB under Approval Route, apply as before.

3. ECB for Development of Special Economic Zone :

SEZ developers can avail of ECB under the Approval Route
for providing infrastructure facilities, as defined in the ECB Policy, within
the SEZ.

4. Corporates under investigation :

Corporates who have violated ECB Policy and are under
investigation by RBI and/or Directorate of Enforcement will not be allowed to
access the Automatic Route. All requests from such corporates will be examined
under the Approval Route.